FY2018 First Quarter consolidated financial result highlights [PDF:320.9 KB]

FY2018 First Quarter consolidated financial result highlights

pages

Ⅰ .	Overview of Consolidated financial Results	… 1
Ⅱ.	Summary of Consolidated Q1 FY2018 financial Results	… 2
Forecast of FY2018 Consolidated Net Sales and Operating Income
Ⅲ.	Order Intake and Net Sales by products / Sanwa Shutter	… 4

July 31, 2018

Sanwa Holdings Corporation

Ⅰ . Overview of Consolidated Results

JPYm・USDk・EURk

Net Sales

[assumed forex rate same as the previous year]

Sanwa Shutter

Japanese Subsidiaries

ODC (U.S.A.)

Novoferm (Europe)

Sanwa Shutter

ODC (U.S.A.)

Novoferm (Europe)

Sanwa Shutter

ODC (U.S.A.)

Operating Income

[assumed forex rate same as the previous year]

Japanese Subsidiaries

Current Income

[assumed forex rate same as the previous year]

Japanese Subsidiaries

Novoferm (Europe)

Sanwa Shutter

ODC (U.S.A.)

Novoferm (Europe)

Other Affiliates

Other Affiliates

Net Income attributable to owners of the parent

[assumed forex rate same as the previous year]

Japanese Subsidiaries

1Q

2Q

Half Year

(＄112.85 €120.17)

profit ratioY/Y

Y/Y

(＄112.14 €122.22)

profit ratioY/Y

(＄112.04 €127.22)

profit ratioY/Y

(＄107.47 €132.29)

2Q(F)

Half Year(F)

profit ratioY/Y

Y/Y

(＄105.00 €130.00)

profit ratioY/Y

(＄105.00 €130.00)

profit ratioY/Y

1) The relevant financial periods for each entity are as follows:	1Q	First Half	2) Figures are round off. <+> is for increase, <-> is for decrease from the previous year.
Sanwa Shutter & Japanese subsidiaries:	Apr.1 to Jun.30	Apr.1 to Sep.30	Apr.1 to Mar.31 following year	3) Figures by entities are before consolidation adjustment and do not add up to total.
ODC & Novoferm:	Jan.1 to Mar.31	Jan.1 to Jun.30	Jan.1 to Dec.31	4) Forex rate is term average.
5）Figures in 1Q"Y/Y" indicates insrease rates for sales and increase/decrease amounts for incomes.

Full Year

Ⅱ. Summary of Consolidated Q1 FY2018 Results

summary

■ Consolidated net sales increased in all areas (Japan, USA, and Europe).

Overhead Door (USA) and Novoferm (Europe) net sales continued to grow steadily from FY2017. ■ Consolidated operating income increased slightly.

The increase of USA & Europe businesses covered the decrease of Japanese business caused by increase in SG&A costs.

■ Consolidated net sales increased by 7.3% or 5.2 billion yen vs. Q1 FY2017 (if FY2017 currency rate applied, it would have increased by 6.8% or 4.9 billion yen).

JapanNet Sales

: Increased by 6.0% vs. Q1 FY2017. Sanwa Shutter increased by 6.6%. The products used for residences, factories, and hotels increased, but medical/welfare facilities decreased. By products, heavy-duty shutters increased by 16.9% driven by favorable factories and warehouses markets. Lightweight shutters increased by 4.7%, Buildings & condominium doors increased by 7.9%, and Partitions decreased by 4.3%. Maintenance & Repair business increased by 8.4%, which is the final year of transitional measures for legal inspection & report for fire -proof equipment in FY2018. Japanese subsidiaries total (except Sanwa Shutter) increased by 3.4%. Okinawa Sanwa and Sanwa Tajima increased significantly but Showa Front decreased.

USA(ODC) : Increased by 6.8% vs. Q1 FY2017 on local currency basis. Door sales (Access Systems Division) increased by 7.9%, Garage doors increased by 10.6%, and Commercial doors increased by 4.2%. Install & Service increased slightly by 0.4% because of unfavorable US sales center despite the significant increase of 14.0% in Canadian business (CDS). Operators increased significantly by 13.1% driven by sales increase at both professional-channel and retail stores. Automatic doors stayed flat.

Truck doors decreased by 5.2%.

Europe(NF) ：Increased significantly by 12.1% vs. Q1 FY2017 on local currency basis. Even excluding new consolidations (Bolton Gate Services),

it increased by 9.1%. By products, Hinge doors increased by 9.1%, Garage doors increased by 7.3%, and Industrial doors increased by 16.4% including the effect of Bolton Gate Services consolidation.

Operating Income

■ Consolidated operating income increased slightly by 4 million yen vs. Q1 2017 and remained in the black (if 2017 currency rate applied, it would have increased by 16 million yen).

Japan

: Sanwa Shutter decreased by 80 million yen. Although gross profit increase by 0.24 billion yen, SG&A costs (mainly personnel expenses) increased 0.32 billion yen. But the deficit was lower than planned. Japanese subsidiaries total (except Sanwa Shutter) decreased by 0.18 billion yen driven by the unfavorable of Sanwa System Wall despite the increase in Okinawa Sanwa.

USA(ODC) : Increased by $ 1.4 million vs. Q1 2017 on local currency basis due to volume increase and sales price increase overcoming the impact of steel price increase from FY2017.

Europe(NF) : Increased by € 0.7 million vs. Q1 2017 on local currency basis due mainly to volume increase covering the increase of SG&A costs in Bolton Gate Service.

Current Income

■ Consolidated current income improved by 0.14 billion yen.

Non-operating profit/loss improved by 0.13 billion yen and equity method results improved slightly.

Net Income attributable to owners of the parent

■ Net income attributable to owners of the parent decreased by 0.18 billion yen.

Extraordinary profit/loss decreased by 0.31 billion yen due to the reaction of gain of fixed assets sales in Europe in FY2017.

Forecast of FY2018 Consolidated Net Sales and Operating Income

summary

■ The company maintains its forecast announced on May 14, 2018.

Net Sales

■ All areas (Japan, USA, and Europe) achieved as expected, and forecast to grow.

Japan

: Expected to achieve its forecast driven by Sanwa Shutter's higher order backlog sales initiatives for orders within FY2018 and significant increase of Maintenance & Repair sales due to the final year of transitional measures for legal inspection & report for fire-proof equipment.

USA(ODC) : Expected to achieve its forecast since strong sales of Garage doors, Industrial doors, and Operators cover the unfavorable of

Truck doors.

Europe(NF) : Expected to achieve its forecast because Hinge doors and Garage doors sales are favorable across Europe and Industrial doors are steadily strong thanks to favorable performance of Alpha and Bolton Gate Service.

Operating Income

■ Japanese business is progressing as expected, overseas businesses expected to achieve the original forecast.

Japan : Maintains its forecast since increase of Sanwa Shutter's cost such as material costs, installation costs, and personnel expenses is within our expectation.

USA(ODC) : Maintains its forecast since sales volume projected to be as planned and sales price increase offset by the impact of material

price increase. In addition, forex rate tends to move towards the depreciation of the yen compared with forecast.

Europe(NF) : Maintains its forecasts since NF also focus on passing the increase of material price to sales price and increases sales volume in

all segments.

Ⅲ. Order Intake and Net Sales by products / Sanwa Shutter

JPYm・%

FY2017												FY2018
1Q				Half Year				Full Year				1Q				Half Year(F)				Full Year(F)
Order Intake	% of total	Sales	% of total	Order Intake	% of total	Sales	% of total	Order Intake	% of total	Sales	% of total	Order Intake	% of total	Sales	% of total	Order Intake	% of total	Sales	% of total	Order Intake	% of total	Sales	% of total
Rolling Shutters	Lightweight	<-0.2> 7,021	14.3	<1.1> 6,195	22.3	<-0.2> 13,859	14.6	<1.9> 13,671	17.0	<3.5> 28,148	15.0	<5.0> 28,242	15.1	<3.7> 7,278	15.6	<4.7> 6,487	21.9	<3.2> 14,300	14.2	<3.9> 14,200	16.9	<6.2> 29,900	14.6	<5.9> 29,900	15.2
	Heavy-duty	<4.5> 9,312	19.0	<-6.8> 4,684	16.8	<-4.5> 17,631	18.5	<4.8> 14,974	18.6	<-0.1> 35,464	18.9	<6.8> 35,286	18.8	<3.2> 9,611	20.6	<16.9> 5,477	18.5	<4.9> 18,500	18.4	<5.5> 15,800	18.8	<10.5> 39,200	19.1	<7.1> 37,800	19.2
	Sub Total	<2.4> 16,333	33.3	<-2.5> 10,879	39.1	<-2.7> 31,491	33.1	<3.4> 28,645	35.6	<1.5> 63,612	33.9	<6.0> 63,529	33.9	<3.4> 16,890	36.2	<10.0> 11,965	40.4	<4.2> 32,800	32.6	<4.7> 30,000	35.8	<8.6> 69,100	33.7	<6.6> 67,700	34.4
Shutter-related Products	Overhead Doors	<-1.6> 1,690	3.4	<-8.0> 1,187	4.3	<-1.0> 3,376	3.6	<4.4> 3,143	3.9	<-1.0> 6,859	3.7	<1.6> 6,868	3.7	<-1.6> 1,663	3.6	<8.4> 1,286	4.3	<6.6> 3,600	3.6	<5.0> 3,300	3.9	<10.8> 7,600	3.7	<7.7> 7,400	3.8
	Others	2,744	5.6	1,736	6.2	5,702	6.0	4,984	6.2	11,867	6.3	11,714	6.3	3,347	7.2	1,884	6.4	6,200	6.2	5,100	6.1	12,800	6.2	11,900	6.0
	Sub Total	<-3.3> 4,435	9.0	<-7.9> 2,923	10.5	<-0.4> 9,078	9.5	<1.4> 8,128	10.1	<0.8> 18,726	10.0	<3.8> 18,583	9.9	<13.0> 5,011	10.7	<8.5> 3,171	10.7	<7.9> 9,800	9.7	<3.3> 8,400	10.0	<8.9> 20,400	10.0	<3.9> 19,300	9.8
Doors	Comm. Bldgs/ Condominiums	<7.8> 15,983	32.6	<0.1> 5,100	18.3	<0.7> 29,344	30.9	<10.3> 21,471	26.7	<-10.5> 55,447	29.6	<6.4> 54,604	29.1	<-23.3> 12,253	26.3	<7.9> 5,502	18.6	<4.3> 30,600	30.4	<2.9> 22,100	26.3	<6.2> 58,900	28.7	<3.3> 56,400	28.6
	Residential	<9.5> 1,068	2.2	<9.3> 1,062	3.8	<2.6> 2,261	2.4	<2.6> 2,261	2.8	<4.5> 4,733	2.5	<4.5> 4,732	2.5	<-5.2> 1,013	2.2	<-4.6> 1,013	3.4	<1.7> 2,300	2.3	<-2.7> 2,200	2.6	<-11.3> 4,200	2.0	<-13.4> 4,100	2.1
	Sub Total	<7.9> 17,052	34.8	<1.6> 6,162	22.2	<0.8> 31,606	33.2	<9.6> 23,732	29.5	<-9.5> 60,181	32.1	<6.2> 59,336	31.7	<-22.2> 13,266	28.4	<5.7> 6,515	22.0	<4.1> 32,900	32.7	<2.4> 24,300	29.0	<4.8> 63,100	30.8	<2.0> 60,500	30.7
Window-related Products		<7.6> 2,109	4.3	<7.9> 2,058	7.4	<5.1> 4,454	4.7	<5.0> 4,423	5.5	<3.4> 9,073	4.8	<3.5> 9,068	4.8	<-1.1> 2,087	4.5	<-0.5> 2,048	6.9	<1.0> 4,500	4.5	<1.7> 4,500	5.4	<5.8> 9,600	4.7	<5.9> 9,600	4.9
Exterior Fittings		<2.5> 1,176	2.4	<1.8> 992	3.6	<3.4> 2,496	2.6	<8.3> 2,454	3.0	<-3.6> 4,875	2.6	<5.5> 5,098	2.7	<-9.8> 1,060	2.3	<1.5> 1,007	3.4	<8.2> 2,700	2.7	<7.2> 2,630	3.1	<10.8> 5,400	2.6	<7.3> 5,470	2.8
Others	Partitions	<4.4> 3,354	6.8	<0.3> 1,429	5.1	<4.8> 6,867	7.2	<2.7> 5,006	6.2	<-4.8> 12,501	6.7	<6.8> 13,150	7.0	<-12.3> 2,942	6.3	<-4.3> 1,368	4.6	<13.6> 7,800	7.7	<11.9> 5,600	6.7	<24.0> 15,500	7.6	<8.7> 14,300	7.3
	Stainless-Steel Entrances	<14.0> 1,859	3.8	<-7.4> 526	1.9	<13.5> 3,677	3.9	<-2.5> 2,504	3.1	<8.6> 7,734	4.1	<4.1> 7,068	3.8	<62.1> 3,014	6.5	<125.4> 1,186	4.0	<14.2> 4,200	4.2	<7.8> 2,700	3.2	<11.2> 8,600	4.2	<3.3> 7,300	3.7
	Aluminum Fronts	<15.7> 580	1.2	<34.5> 312	1.1	<27.6> 1,279	1.3	<43.4> 1,093	1.4	<8.9> 2,587	1.4	<26.7> 2,550	1.4	<9.4> 635	1.4	<24.6> 389	1.3	<9.4> 1,400	1.4	<9.7> 1,200	1.4	<19.8> 3,100	1.5	<9.8> 2,800	1.4
	Automatic door oprator	<8.6> 725	1.5	<-2.5> 515	1.9	<8.1> 1,586	1.7	<4.1> 1,360	1.7	<2.3> 3,234	1.7	<3.8> 3,182	1.7	<4.5> 757	1.6	<13.4> 584	2.0	<7.1> 1,700	1.7	<15.4> 1,570	1.9	<14.4> 3,700	1.8	<12.2> 3,570	1.8
	Others	1,400	2.9	2,001	7.2	2,529	2.7	3,170	3.9	4,914	2.6	5,819	3.1	986	2.1	1,395	4.7	2,900	2.9	3,000	3.6	6,500	3.2	6,460	3.3
	Sub Total	<9.8> 7,919	16.2	<25.7> 4,784	17.2	<7.5> 15,940	16.8	<15.4> 13,135	16.3	<-0.9> 30,972	16.5	<9.7> 31,771	17.0	<5.3> 8,336	17.9	<2.9> 4,923	16.6	<12.9> 18,000	17.9	<7.1> 14,070	16.8	<20.8> 37,400	18.2	<8.4> 34,430	17.5
Total		<5.1> 49,027	100.0	<2.7> 27,801	100.0	<0.8> 95,067	100.0	<7.0> 80,519	100.0	<-2.8> 187,443	100.0	<6.3> 187,388	100.0	<-4.8> 46,651	100.0	<6.6> 29,631	100.0	<5.9> 100,700	100.0	<4.2> 83,900	100.0	<9.4> 205,000	100.0	<5.1> 197,000	100.0

Commercial Building Materials	<4.5> 31,400	64.0	<-6.7> 12,063	43.4	<-1.8> 58,907	62.0	<5.0> 45,369	56.3	<-7.2> 113,408	60.5	<4.7> 112,763	60.2	<-9.9> 28,290	60.6	<12.8> 13,610	45.9	<6.6> 62,800	62.4	<4.0> 47,200	56.3	<8.8> 123,400	60.2	<3.4> 116,600	59.2
Shop-related Materials	<0.3> 5,967	12.2	<2.4> 4,972	17.9	<0.4> 11,769	12.4	<4.0> 11,426	14.2	<2.3> 23,713	12.7	<5.3> 23,756	12.7	<4.9> 6,261	13.4	<5.5> 5,244	17.7	<2.8> 12,100	12.0	<1.5> 11,600	13.8	<3.7> 24,600	12.0	<1.9> 24,200	12.3
Residential Housing Materials	<6.5> 4,507	9.2	<6.8> 4,265	15.3	<3.2> 9,493	10.0	<4.5> 9,422	11.7	<0.8> 19,258	10.3	<3.5> 19,495	10.4	<-5.3> 4,269	9.2	<-2.7> 4,151	14.0	<3.2> 9,800	9.7	<1.9> 9,600	11.4	<2.3> 19,700	9.6	<0.5> 19,600	9.9
Maintenance & Repair	<9.0> 6,256	12.8	<7.6> 5,098	18.3	<12.4> 13,219	13.9	<9.4> 12,179	15.1	<11.9> 27,769	14.8	<12.1> 27,307	14.6	<14.0> 7,134	15.3	<8.4> 5,529	18.7	<6.7> 14,100	14.0	<12.5> 13,700	16.3	<17.8> 32,700	16.0	<17.6> 32,100	16.3
Others	<28.5> 895	1.8	<149.1> 1,401	5.0	<4.1> 1,677	1.8	<139.2> 2,121	2.6	<-6.3> 3,294	1.8	<47.4> 4,065	2.2	<-22.3> 695	1.5	<-21.8> 1,095	3.7	<13.3> 1,900	1.9	<-15.2> 1,800	2.1	<39.6> 4,600	2.2	<10.7> 4,500	2.3

Amount	Amount	Amount	Amount	Amount	Amount
Outstanding Order Backlog	117,888	110,804	96,358	113,666	113,158	104,358
Work-in-process	25,137	21,326	16,439	25,503	23,100	17,600

1) < >=⊿% year on year